Journal of Statistics Applications & Probability

Author Country (or Countries)

Saudi Arabia


In this paper, we examine the causal relationship between renewable energy and economic growth in Saudi Arabia from 1990 to 2021. Our hypothesis suggests a bidirectional causal link between economic growth and the adoption of renewable energy, emphasizing the significant impact of transitioning to renewables on Saudi Arabias economic growth. The findings indicate a unidirectional causal relationship in the short and long term, with real GDP influencing actual investment spending and the labor force influencing real GDP. Moreover, there is a unidirectional causal relationship between real GDP to renewable energy, suggesting that real GDP drives the development of renewable energy in both the short and long term.

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